Successful VoIP Outsourcing For TDM and VoIP Carriers

IP technology has been used in long-haul carrier backbone networks for some time; however, IP technology – and VoIP services – now represents disruptive changes to the telecom industry. Additional new capabilities are being deployed steadily and rapidly, and carriers today are increasingly faced with the challenge of interfacing VoIP and TDM networks.

VoIP services now are starting to extend into the carriers’ internal network and outward toward carriers’ service provider end users, presenting a whole new set of challenges for carriers who want to make use of managed or outsourced switch services.

VoIP usage by the retail consumer, for example, has grown from 40 billion minutes in 2002 to 850 billion minutes in 2005. For the same period, usage in retail enterprises has grown from 60 billion minutes to 1,150 billion minutes, and the wholesale market for VoIP grew from zero minutes in 2002 to 450 billion minutes in 2005.

Established and startup carriers now need to use interconnection services to transmit IP-based traffic, and regularly must interface VoIP networks with traditional TDM networks. For carriers handling VoIP traffic, network outsourcing can be a viable option that lessens network support requirements, allows greater focus on the business and on market penetration, and generates greater financial return.

In the TDM world, capital cost avoidance and cost-effective service delivery is a primary driver of outsourcing, along with access to technical expertise. However, in the new IP-based world, technical expertise becomes paramount in the successful management of a VoIP-intensive environment. A history that involves working with next-generation carriers as well as with legacy telecom voice services is strongly recommended for any outsource partner. With this history should come experience with practical network management issues and solutions – this experience with carriers will be essential for an outsourcing partner who promises high VoIP quality of service.

Network monitoring and management capabilities can be split logically into element and service categories. The decoupled nature of IP networks suggests a range of network monitoring and management systems, processes and tools. Indeed, carriers should review all prospective outsourcing vendors’ abilities across a number of network management areas. This should include the vendors’ understanding of plans and systems for testing and extending the line of supported equipment.

In terms of element management, a number of different activities can, and should, be undertaken by an outsourcing partner to ensure effective service delivery. Carriers should carefully examine steps taken by network vendors in such areas as:

• Physical network redundancy
• Active network testing
• Call quality monitoring
• VoIP traffic monitoring
• Element monitoring
• Service level agreements (SLAs)
• SIP message management
• Processes and procedures
• Availability of 24/7 network

For instance, is the vendor’s network robust in terms of redundant Internet links; carrier-class, environmentally controlled facilities; backup systems; and backup NOC capabilities? Can the NOC systems provide real-time visibility of key business and engineering metrics?

As for service management, that is principally about QoS. SLAs are necessary to address performance and quality reporting. Further, active and passive monitoring tools should be given consideration.

Active monitoring involves initiating activity on the network, comparing results with expected results in an attempt to replicate the user experience. Passive monitoring involves listening to network traffic to determine QoS. Monitoring of the customer experience using standard indicative measures – such as ASR and ALOC – should also be considered.

Established carriers seeking support for a migration strategy to VoIP, or looking for interconnection to VoIP carriers, could have a number of reasons to consider an outsourced solution. Capital costs and operating expenses associated with TDM conversion and signaling, as well as with IP infrastructure, can be avoided. An increase in speed-to-market ensures rapid expansion of revenue – and scalability to take advantage of market opportunities. And outsourcing eliminates the risk of choosing the wrong technology or vendor.

An interesting variation on the traditional outsourcing business model is presented by a build-operate-transfer (BOT) contractual arrangement. With a BOT, the VoIP-TDM interconnection service is leased/outsourced for a period of time, and then in-sourced effectively. This offers the added advantage of a managed transition path, permitting an established carrier to participate quickly in the VoIP market while simultaneously working to integrate internal systems and to prepare and/or augment in-house staff. And, since an established carrier can utilize the BOT approach to evaluate service and technology, it affords a certain amount of risk protection in the same way that a traditional outsource arrangement does.

Can an established carrier build its own VoIP-TDM interconnection solution? Yes, of course – this path makes good business sense if the internal skills and knowledge exist to design a robust solution with multiple redundant/backup systems and 24/7 monitoring capability. Otherwise, outsourcing – under either a traditional agreement or a BOT contract – is a sensible strategy.

A robust outsourced solution should offer:

• Reliable and redundant TDM and VoIP infrastructure
• Redundant Internet connectivity
• Onsite, experienced technicians
• Redundant CDR data capture and storage
• Out-of-band signaling support, such as C7 or SS7
• 24/7 live monitoring via NOC services
• Adequate reporting capability (e.g. traffic performance reporting, call rating, invoice generation)
• A secure and manned site
• Spare equipment housed onsite
• Vendor support

VoIP-centric, emerging carriers looking to trade traffic with other VoIP carriers require an IP-to-IP interconnection solution. This can be a natural fit for a managed or outsourced service solution, particularly since avoidance of capital cost and operating expense (associated with VoIP-experienced technical staff) is a very high priority for new market entrants on a rapid growth trajectory.

A pure VoIP interconnection solution involves providing the carrier customer with centralized IP routing and call control, utilizing session border control technology. Typically, the carrier should look for an IP-to-IP interconnection service offered on an incremental price basis, by which pricing is based on volume – this makes the service affordable initially, and also affordable for new growth routes that are added over time. For maximum flexibility and economics, an outsourced IP-to-IP interconnection solution should offer:

• Rapid service turn-up
• Protocol interoperability
• Gateway interoperability
• Route sizing
• 24/7 routing, monitoring and customer service
• Real-time performance and margin reporting

A VoIP switching infrastructure – whether in-house or accessed through an outsource partner – that adapts to various signaling protocols and codecs will support a responsive approach to the market.

With an outsourced VoIP service solution that is well-planned and well-managed, carriers can offload certain responsibilities in return for a greater focus on the business and on market penetration, ultimately generating better financial results. VoIP carriers gain significant savings if they can find the right party for outsourcing certain network functions. TDM carriers cut costs and tap into technical proficiency not readily available within their own organization.

 
Rich Grange is CEO, president and founder of New Global Telecom (NGT), which provides wholesale VoIP telephony services. He can be reached at Rich.Grange@ngt.com.

New Global Telecom www.ngt.com

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